SEC Division of Enforcement Warns Against Pyramid Schemes

Stockbroker Law - Tuesday, April 12, 2016
SEC Division of Enforcement Warns Against Pyramid Schemes

On March 2, 2016 Andrew Ceresney, Director of the Division of Enforcement of the U.S. Securities and Exchange Commission addressed the public on violations that target retail investors with pyramid schemes noting “we protect the interests of retail investors by bringing bad actors to justice and by returning money to victimized investors.” The presentation noted the proliferation of pyramid schemes often targeting working class and the retirement community and other vulnerable retail investors.  


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FINRA Warns Against High-Yield CD Offers

Stockbroker Law - Tuesday, April 05, 2016
FINRA Warns Against High-Yield CD Offers

In an investment alert dated February 9, 2016, the Financial Industry Regulatory Authority (FINRA) warned investors that high-yield CD offers can be big for high-commission investments. The investor alert warns against sales pitches designed to trick unsuspecting investors into purchasing very costly, potentially risky investments which are not in fact FDIC insured CD like products. 


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FINRA Releases Joint SEC Issue Investor Alert

Stockbroker Law - Tuesday, March 29, 2016
FINRA Releases Joint SEC Issue Investor Alert

In a news release dated December 21, 2015 the Financial Industry Regulatory Authority issued a Joint Investor Alert with the SEC posing ten questions investors should ask about securities backed lines of credit (SBLOC’s). These investments have been sold to small investors and are essentially loans made to investors collateralized by their portfolio holdings. 


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FINRA’s Arbitration and Mediation Page

Stockbroker Law - Tuesday, March 22, 2016
FINRA’s Arbitration and Mediation Page

Financial Industry Regulatory Authority maintains an arbitration and a mediation page on its website. This web page includes the very easy-to-read summary of the arbitration and mediation services offered by the Financial Industry Regulatory Authority (FINRA). 


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Sophisticated Investor Standard for Private Placements?

Stockbroker Law - Thursday, March 17, 2016
Sophisticated Investor Standard for Private Placements?

On December 18, 2015 the United States Securities and Exchange Commission issued a Report on the Review of the Definition of “Accredited Investor.” The fringe market involving the sale of private placement investments to qualified investors pursuant to exemptions under Regulation D have exploded in the past ten years. Regulation D is an exception to the filing requirements for offering companies involving packaging and selling private placement investments to public investors. Unfortunately, many firms involved with the sale of private placements have abused these guidelines and have engaged in gaming of the accredited investor qualification requirements to advance the marketers self-interests in raising capital for their deals. 


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